The Führer saw case 3 coming definitely nearer; it might emerge from the present tensions in the Mediterranean, and he was resolved to take advantage of it whenever it happened, even as early as 1938.

In the light of past experience, the Führer did not see any early end to the hostilities in Spain. If one considered the length of time which Franco's offensives had taken up till now, it was fully possible that the war would continue another 3 years. On the other hand, a 100 per cent victory for Franco was not desirable either, from the German point of view; rather we were interested in a continuance of the war and in the keeping up of the tension in the Mediterranean. Franco in undisputed possession of the Spanish Peninsula precluded the possibility of any further intervention on the part of the Italians or of their continued occupation of the Balearics. As our interest lay more on the prolongation of the war in Spain, it must be the immediate aim of our policy to strengthen Italy's rear with a view to her remaining in the Balearics. But the permanent establishment of the Italians on the Balearics would be intolerable both to France and Britain, and might lead to a war of France and England against Italy—a war in which Spain, should she be entirely in the hands of the Whites, might make her appearance on the side of Italy's enemies. The probability of Italy's defeat in such a war was slight, for the road from Germany was open for the supplementing of her raw materials. The Führer pictured the military strategy for Italy thus: on her western frontier with France she would remain on the defensive, and carry on the war with France from Libya against the French North African colonial possessions.

As a landing by Franco–British troops on the coast of Italy could be discounted, and a French offensive over the Alps against northern Italy would be very difficult and would probably come to a halt before the strong Italian fortifications, the crucial point [Schwerpunkt] of the operations lay in North Africa. The threat to French lines of communication by the Italian Fleet would to a great extent cripple the transportation of forces from North Africa to France, so that France would have only home forces at the frontiers with Italy and Germany.

If Germany made use of this war to settle the Czech and Austrian questions, it was to be assumed that Britain – herself at war with Italy – would decide not to act against Germany. Without British support, a warlike action by France against Germany was not to be expected.

The time for our attack on the Czechs and Austria must be made dependent on the course of the Anglo–French–Italian war and would not necessarily coincide with the commencement of military operations by these three States. Nor had the Führer in mind military agreements with Italy, but wanted, while retaining his own independence of action, to exploit this favorable situation, which would not occur again, to begin and carry through the campaign against the Czechs. This descent upon the Czechs would have to be carried out with “lightning speed.”

In appraising the situation Field Marshal von Blomberg and Colonel General von Fritsch repeatedly emphasized the necessity that Britain and France must not appear in the role of our enemies, and stated that the French Army would not be so committed by the war with Italy that France could not at the same time enter the field with forces superior to ours on our western frontier. General von Fritsch estimated the probable French forces available for use on the Alpine frontier at approximately twenty divisions, so that a strong French superiority would still remain on the western frontier, with the role, according to the German view, of invading the Rhineland. In this matter, moreover, the advanced state of French defense preparations [Mobilmachung] must be taken into particular account, and it must be remembered apart from the insignificant value of our present fortifications – on which Field Marshal von Blomberg laid special emphasis – that the four motorized divisions intended for the West were still more or less incapable of movement. In regard to our offensive toward the southeast, Field Marshal von Blomberg drew particular attention to the strength of the Czech fortifications, which had acquired by now a structure like a Maginot Line and which would gravely hamper our attack.